Cobalt prices increase following DRC’s export ban

Prices of cobalt, a key mineral for energy transition, began to rise following an export ban by the Democratic Republic of the Congo to balance the market.

On China’s Wuxi Stainless Steel Exchange on Monday, cobalt trading was paused after prices jumped nearly 12%, the highest since October.

Last month, DRC said it will stop exporting the mineral for four months. Since the beginning of the year, cobalt oversupply sent prices down by approximately 11.32%.

DRC is the world’s largest cobalt producer with some two thirds of global reserves. Cobalt is a rare metal key to electric battery manufacturing.

The rise of lithium iron phosphate (LFP) batteries, particularly in China, has also reduced the demand for cobalt.